I’m trying to get ahead of it because I’m not sure how tedious a process it might be. But I sell content privately and I’m not sure how that’s going to affect my taxes next year or how to manage it. I sell content privately and revive the money through apps like PayPal and Cashapp and Venmo. I just need advice, thanks!
I’m not sure how to manage my taxes…
byu/mariwithacherryontop intax
Posted by mariwithacherryontop
3 Comments
You should open a separate bank account and have all of the funds go into that account. You can then “pay yourself” out of that account. You will also need to save some for taxes. You should also use this account (or a separate credit card) to pay for legit business expenses. This will help you keep track when you file taxes. Also, depending on how much you make, you will likely need to pay quarterly taxes directly to the IRS.
Not sure how much “help” you need or where…
If it’s bookkeeping.. guessing you might need to do “by account.” Have all your proceeds sent to one bank account. Probably open another account where you set aside for taxes.
If you are a little more savy, I use my brokerage account to hold most of the cash, so I get market interest on the cash. If not, just use bank accounts..
If you’ve started business, then keep everything in business accounts. Get a business credit card and try to use that only for business expenses. At the end of the year, now you have a record of al your expenses.
Otherwise, dedicate a personal credit card for your business expenses…
Look up Safe Habor for taxes. To avoid underpayment issues, you need to have paid in 100% of last year’s tax liability or 90% of this year’s. That’s how you figure out your estimated qtr payments.
If your sales yo-yo year to year, one of the two rules will “help your out.”
Is this a side job, or your primary?
When you earn income, then you owe taxes.
Be sure to SAVE some of your income to pay taxes due when you file taxes in April.